British retailer Matalan's revenue at $1.37 bn in FY24

Matalan, a leading UK-based omni-channel fashion and homeware retailer, has reported a decline in revenue by 6 per cent on a like-for-like basis, reaching £1.082 billion (approximately $1.37 billion) in fiscal 2024 (FY24). This decrease was attributed to strategic decisions and challenging trading and market conditions. However, the company reported a positive shift in its sales mix, with full price sales increasing to 70 per cent, up 4 percentage points from the previous year due to tighter stock and markdown control.

Despite the drop in revenue, Matalan's EBITDA saw a substantial year-on-year increase of 92 per cent, rising to £53 million. This impressive growth was driven by gross margin improvements, stringent cost controls, and the successful delivery of operational enhancements, the company said in a press release.

The company's gross margin improved by 8 per cent, reaching £495 million. This was largely due to better buying strategies, a comprehensive value creation programme, improved product margins, lower levels of discounting, and the growth in full price sales.

Additionally, Matalan significantly reduced its loss before tax by 44 per cent, bringing it down to £60 million compared to the previous year.

“In the last year we have kick started the transformation of Matalan against a very challenging backdrop, resetting the foundations of the business. We delivered a significant increase in underlying profit as a result of our clear focus on growing full price sales and tight cost control,” said Jo Whitfield, chief executive officer of Matalan.

Fibre2Fashion News Desk (DP)